Knutsford Express financials heading south Big drop in revenues and profits

Knutsford Express financials heading south Big drop in revenues and profits

Big drop in revenues and profits

BY DURRANT PATE
Observer Business Writer

Friday, January 22, 2021

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Passenger and courier transportation company Knutsford Express latest financial report shows the company heading in the wrong direction, as the company reports a big drop in both revenues and profits for its half year ended November 2020.

Revenues for the period were down 55 per cent to $271.32 million, registering a $335.87 million decline when compared with the $607.19 million reported for the same period in 2019. For the second quarter, revenues dropped by 47 per cent to close the period at $149.54 million down from the $282.67 million recorded in 2019.

On the positive side, Knutsford Express managed to contain and slash its administrative and general expenses by 38 per cent. This resulted in expenses ending the half year period at $327.27 million, down from the $525.94 million incurred in 2019.

In spite of this cost containment, Knutsford Express still recorded a gross loss of $55.95 million, which was a total reversal from the profit of $81.25 million reported for the same period a year ago. The gross loss for the second quarter amounted to $29.52 million relative to a gross profit of $23.87 million booked in 2019.

FINANCED COST PLOUGHED BACK

Finance costs decreased by 42 per cent to $7.35 million for the period under review from $12.75 million for the same period in 2019, while finance income fell to $4.34 million in the first six months of 2020. Finance income for the comparable period in 2019 was $4.42 million.

Loss before taxation amounted to $58.97 million, relative to a profit of $72.92 million reported for the similar period in 2019. There was no tax charge for the period under review.

However, a tax charge of $6.16 million was reported in 2019. Therefore, net loss closed at $58.97 million compared with a net profit $66.76 million in 2019.

For the second quarter, Knutsford Express recorded net loss of $33.79 million relative to net profit of $18.99 million recorded in 2019's second quarter. As at November 30, 2020, total assets totalled $1.10 billion, which is $18.03 million more than the $1.08 billion recorded last year.

The increase in total assets was due to increases in property, plant and equipment and right of use asset, which total $873.31 million and $7.31 million, respectively. This was, however, offset by a 41 per cent and 30 per cent decrease in cash and banks balances and short-term investments to $71.43 million and $96.71 million, respectively.


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